RENAULT LATITUDE

French automaker Renault may have the solution to FCA’s product needs.

If you want to buy a French-built model in the US, you probably know that Renault, Peugeot and Citroen have no presence in the market. Instead, you’ll only be able to consider the Toyota Yaris, the lone model currently built in France and exported to the US.

The current Chrysler 200 may be replaced by a competitor’s model.

Exit…Stage Right

Both Renault and Peugeot-Citroen once had a presence in the US. Indeed, Renault had controlling interest in American Motors for several years, but exited the market in 1989, two years after selling those assets to the Chrysler Corporation. In 1991, Peugeot made its own exit from the US market, ending Citroen sales too. Some twenty-five years later, few Americans under 40 can recall cars built by French manufacturers and sold in the United States.

Neither manufacturer is poised to return to the US, a market that is immensely profitable, but is also brutally competitive. Beyond domestic manufacturers such as Packard, Checker and Studebaker, a host of foreign makes have thrown in the towel too, including Isuzu, Yugo, Daihatsu, and Suzuki.

However, one of the two French manufacturers could make a return, especially if partnered with a company already present in the US. Renault’s logical partner is Nissan, as both companies own a slice of each other and are jointly led by Carlos Ghosn, the Brazilian-born CEO for the two automakers. Its a successful alliance that has produced numerous cars for the two companies since the confederacy was forged in the late 1990s.

On the other hand, Peugeot-Citroen is not so lucky. A brief partnership forged with GM in 2012 was ended less than two years later as Peugeot sought assistance from Dongfeng, a Chinese manufacturer to support its operation. Of the two French companies, Peugeot’s financial picture is the weakest.

Renault to the Rescue?

Turning back to Renault, this automaker could very well find its way back across the Atlantic, especially if Fiat Chrysler works out an agreement for the French automaker to supply it with vehicles. Indeed, FCA CEO Sergio Marchionne announced last week that his company would no longer build its compact Dodge Dart and midsize Chrysler 200 sedans, choosing instead to devote plant capacity to build more Jeeps and Ram pickup trucks. That move means FCA should become more profitable as well as more attractive to a potential suitor.

At the same time, Marchionne said it would turn to its competitors to supply these models, but the likelihood that a Ford, Toyota or a Hyundai would dilute their own model lines to accommodate FCA seems very unlikely.

Renault may be the most logical supplier for FCA as it has two models — the midsize Latitude and the compact Mégane — that might possibly be rebadged and sold in the US. Both models are underpinned by platforms shared with current Nissan products (Altima and Sentra), but otherwise the cars are all Renault.

The downside in choosing the Mégane is that it isn’t a sedan — Renault builds hatchback, coupe and wagon variants, but no four-door sedan. That said, the hatchback might be a fit for a market that is finally accepting this body style again. Currently, Renault builds the Mégane at four plants scattered across Europe and might be in a position to supply the next generation Dodge Dart.

The second model is the Renault Latitude and this one is already sold in Mexico, where it is known as the Renault Safrane. Interestingly, the Renault Latitude/Safrane is built in Korea by Renault Samsung Motors, a minor car manufacturer operating in a market dominated by Hyundai and Kia.

Busan Plant Capacity

Although the Korean company has built more than 2.4 million cars since its 2000 introduction, its Busan manufacturing plant has the capacity to build 300,000 vehicles annually. Supplying the Latitude as the Chrysler 200 in the US and Canada would keep the Busan factory humming and give Chrysler a much-needed product.

Will Renault respond if Marchionne comes calling? There is a good chance that they would. In 2013, Mitsubishi sought a similar tie up with Renault to supply it with a midsize sedan for the US market, but that deal collapsed. In any case, Mitsubishi is barely hanging on in a market where demand for Renault-supplied vehicles would be much smaller than that of a network composed of Dodge and Chrysler dealers.

At the same time, any Fiat Chrysler and Renault relationship could push out further, perhaps including Nissan and forming at least one kind of a business relationship Marchionne desires.

These are interesting times in the auto industry. Then again, the industry is always fascinating.

Mitsubishi is discontinuing its Lancer as well as its heralded Lancer Evolution models, and that is not sitting well with enthusiasts the world over. Arguably, the Evolution is one of the more exciting small cars on the market, the heart and soul of this small, Japanese automaker.

Quite frankly, Mitsubishi is simply too small to go it alone and can no longer afford to produce new, small cars. In a world where large automakers and alliances are thriving, any company the size of Mitsubishi has to find a way to survive or it will die.

The Lancer Evolution might return thanks to Renault.

Help From Renault-Nissan Alliance

Despite our own contention that Mitsubishi is on life support and may soon go the way of Daihatsu, Isuzu and Suzuki — quitting the US market — this manufacturer apparently has no plans to leave. Instead, the company is building strategic alliances to help it survive. The Renault-Nissan alliance is one such arrangement that will provide at least two new models going forward.

We already know that the next generation Mitsubishi Galant will be based on the Korean-made Renault Latitude, what was the contention of Car & Driver, among others. Even back then — Nov. 2013 — speculation about a Lancer replacement was being discussed.

Two New Models

Well, the current buzz is that Mitsubishi has reached an agreement with the Renault-Nissan alliance to supply two new models for Mitsubishi. One model would be a midsize sedan sold in the US and Canada only, the second model would be a compact sedan marketed globally according to Automotive News. Both models would be based on an existing Renault model and may yet be a few years away from introduction.

Likely, we’ll see the Mitsubishi Galant replacement by 2017 with the compact arriving perhaps in time for the 2016 model year. If that is the case, then the compact’s timing would coincide with the discontinuation of the current Lancer/Evolution model line, scheduled to end following the 2015 model year. However, you can consider this model dead on arrival if it does not incorporate the Evo’s DNA — Mitsubishi fans won’t be fooled by a warmed over Renault.

The Much Ballyhooed Evo

Over the years, the Evo has been prized for its many special features, including its Recaro seats, a twin-scroll turbocharger and hot styling inside and out. The Evo is also all-wheel drive, giving it an edge in a segment matched only by the Subaru WRX. In other words, Mitsubishi can forge whatever alliance it wants, but the the new Lancer/Evo better have the “cred” to go with it.

Mitsubishi made a decision a year or two ago to concentrate on building crossovers going forward. The segment is booming and profitable, with the Outlander and Outlander Sport now comprising about half of Mitsubishi’s US sales. The automaker also sells the tiny Mirage hatchback, but when it comes to cars this small-time Japanese automaker seems content to rely upon alliances to fill in the rest of its thin product line.

A Second Crossover?

Beyond the Outlander/Sport, Mitsubishi does produce a larger utility vehicle for other markets. Automotive News says that Mitsubishi has a replacement larger utility coming in 2018, with plug-in hybrid models of both utilities planned. Thus, we may yet see another crossover model in the US, what would help provide better representation for the smallest of Japan’s surviving car manufacturers maintaining a North American presence.

With two supplied models on the way, will Mitsubishi join the Renault-Nissan alliance? That isn’t likely as the two companies have multiple arrangements with other manufacturers already in place. For its part Mitsubishi also has an alliance with Citroen, part of the PSA Peugeot Citroen company that competes directly with Renault.